Bangladesh purchased 220 thsd tons of wheat from the US

The Bangladesh government has approved the purchase of about 220,000 tonnes of wheat from the United States as part of efforts to ease trade tensions and reduce high import tariffs imposed by the Trump administration.

The purchase was approved by Bangladesh under an intergovernmental agreement at a price of $302.75 per tonne, a Bangladesh food ministry official said. The shipments will be handled by a Singapore-based trading company.

Earlier in July, Bangladesh signed a memorandum of understanding to import 700,000 tonnes of wheat from the United States annually for the next five years.

Bangladesh currently relies heavily on cheap wheat from the Black Sea region and imports smaller volumes of high-quality grain from countries such as the United States and Canada to blend with lower-quality grain.

Before the Trump administration disbanded USAID this spring, Bangladesh received donations of American wheat and other food grains.

Trump has threatened Bangladesh with 35% tariffs on its exports from August 1 unless the country takes steps to reduce its $6 billion trade imbalance with the United States.

The planned purchase of 700,000 tons of wheat would only slightly reduce that deficit. But Brian Lidle, vice president of foreign operations for the American Wheat Association, said the deal has prompted the association to look for other countries that might choose to buy American grain to avoid crippling tariffs.

Liddle said the association is seeking similar deals with other countries in Asia and sub-Saharan Africa that previously received wheat and other food aid from the United States. “We’re looking to replace a significant portion of that demand with more direct, sustainable commercial supply,” he said.

Bangladesh also ordered 25 Boeing jets on July 27 and has increased imports of other American goods.

A Bangladesh government delegation is in the United States this week for trade talks, officials in Dhaka said.

Tags: Bangladesh, wheat, USA